February 2025 was a serious test for the crypto market. Many expected Donald Trump's administration to lead America to the status of the cryptocurrency capital of the world. Instead, we are witnessing a market crash that has already wiped out over $1 trillion in capitalization.
What happened?
🔹 Tariff blow. New 25% tariffs on imports from China, Canada, and Mexico have heightened inflation risks and scared investors. Cryptocurrencies, being a risky asset, have been caught in a wave of mass sell-offs.
🔹 Hack of the Bybit exchange. A cyberattack on one of the largest crypto exchanges resulted in the theft of 400,000 ETH, undermining trust in centralized platforms.
🔹 Capital outflow from Bitcoin ETFs. Institutions are pulling money out of cryptocurrencies, fearing further declines.
🔹 Geopolitical turbulence. The increase in economic tension and uncertainty in the global market led to a flight to 'safe havens' such as gold and the US dollar.
📉 Bitcoin has fallen, and altcoins are following suit. This is not just a correction — it is a real stress test for the crypto industry.
💥 Greed and fear at a minimum
The Fear and Greed Index has dropped to 10, indicating a state of 'extreme fear'. Such low values were observed during the collapse of TerraUSD in 2022. Investor sentiment is at a low, volatility is off the charts.
💭 What's next?
Trump may still turn the situation around, but for now, the White House is more occupied with political games than cryptocurrencies. Will US regulators create favorable conditions for the industry? Or will cryptocurrencies have to seek a new 'capital' outside of America?
📢 We await your thoughts in the comments! How are you coping with this crash and what scenarios do you see ahead? 🔥
